1. The following is an extract from the financial statements of A2 Milk Company Limited, comprising a reconciliation of Income Tax Expense with the New Zealand statutory tax rate: A2 Milk Company Limited Group ($ thousands) 2019 2018 2017 2016 Profit before taxes 415,711 283,232 139,351 52,299 116,399 79,305 39,018 14,644 Income tax expense calculated at 28% Difference in income tax rates: UK (19.75%), Australian (30%), USA (34.42%), and China (25%) Non-deductible expenses (non-assessable income) 6,430 3,195 1,168 344 5,680 2,168 3,473 1,614 - 4,243 - 1,640 451 673 Prior period adjustment to tax expense Deferred tax impact to tax expense for permanent establishments 114 - 66 -91 517 Unutilised foreign tax credits forfeited Deferred tax asset not recognised 1,429 2,161 2,009 2,577 259 4,427 564 3,507 Total tax expense 127,970 87,548 48,705 21,863 (iii) In 2019, which item has the largest impact between these two tax rates? (1 mark) (iv) Explain whether you believe the bulk of the differences in 2019 between the two tax rates to be persistent or transitory? Maximum 120 words